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Nathan Wilburn invests in Nerf guns and modifies them. Picture: Lawrence Pinder
AUSTRALIAN investors love bricks and mortar, but what about when the bricks in question are tiny, made of plastic and able to provide returns of up to 1400 per cent?
New research from comparison website Finder.com.au found that investing in toys, such as Lego, can actually provide sizeable yields for investors, with specific, limited edition items soaring in value since their release dates.
Finder spokeswoman Bessie Hassan said it was about buying the right items at the right time.
“Toys may not be on our radar when it comes to deciding how we’ll invest our hard-earned cash,” Ms Hassan said. “But if you do your research (on) how these toys appreciate over time, you could potentially reap hundreds or thousands of dollars in return.”
The Lego set with the best growth since release was the Eiffel Tower (2007), which retailed for US$199.99 (AU$263 by today’s exchange rate) and is now available unopened on Amazon, for US$2999 (AU$3950); an annual return of 31.1 per cent and total return on investment of 1400 per cent.
Lego’s most popular collectable, the Star Wars themed ‘Ultimate Collector’s Millennium Falcon’ (2007) first sold for US$499.99 according to The Brickpicker Lego investing guide. Today, the 5197-piece set fetches US$5899, or $7770 in Aussie currency. That’s a total return of 1080 per cent, after 28 per cent annual growth. On those numbers, the set will hit $16,200 in value by 2020.
Other popular sets were the Star Destroyer, up 870 per cent since 2002 release and Taj Mahal, up 866 per cent since 2008.
“Exclusivity would be the main factor driving up the price of these items over time,” Ms Hassan said. “Unlike shares or property, this is foreign territory for many, so it may be difficult to access sound advice.”
Nathan Wilburn invests in Nerf guns and modifies them. Picture: Lawrence PinderSource:News Corp Australia
The Finder research also revealed decent returns for other toys, such as figurines. A Ned Stark (Game of Thrones) Pop Vinyl toy is now worth $840; after initially retailing for $18.99.
Nathan Wilburn was after more firepower than figurines though and fell in love with Nerf guns.
“When I was 18 some friends and I bought a couple of Nerf guns,” Mr Wilburn said. “From there, I wanted to upgrade them. I’ve now got more than 80 in a garden shed.”
The life coach and gym owner, now 34, likes to pull the guns apart and modify them with improvised parts, like high tension springs and lithium batteries.
“One now shoots 300 rounds a minute and can almost put a hole in a plasterboard wall with a foam dart,” he said.
Mr Wilburn has invested more than $2000 in the guns and plans to pass them on to his future grandchildren, when he hopes they are worth serious money.
“Nerf is constantly upgrading them,” he said. “The ones I have in storage, they don’t make them anymore.”
Originally published as Toys bring big returns for investors